Benchmark indices opened higher on Monday, supported by improving corporate earnings and upbeat sentiment around Q2 results.
At 9:18 am, the S&P BSE Sensex gained 87.27 points to 84,650.05, while the NSE Nifty50 rose 24.50 points to 25,934.55. Broader markets were mixed in early trade.
According to Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, Q2 numbers so far show a clear improvement in profitability. “Net profits have grown 10.8% — the strongest in six quarters and above earlier estimates,” he said. He expects Q3 earnings to strengthen further, led by discretionary consumption, especially automobiles, while cautioning that post-festive demand trends will be critical to watch.
Vijayakumar added that foreign inflows remain the missing piece for a sustained rally. “FIIs have been selling into every rally. A change in their stance is needed for markets to hit and hold new record highs,” he noted, adding that improving earnings from Q3 may help shift the trend.
Prashanth Tapse, Senior VP (Research) at Mehta Equities, said Nifty ended last week with five consecutive gains, while Bank Nifty extended its winning run to six days. He attributed the positive sentiment to the NDA’s Bihar victory, cooling inflation at 0.25%, hopes of a US–India trade deal, the end of the US shutdown and easing crude prices.
Despite FII outflows of Rs 4,968.20 crore on Friday and Rs 13,652.70 crore so far this month, Tapse believes the Nifty is still on track to test new highs. “The all-time high of 26,277.35 is within reach as long as Nifty stays above 25,600,” he said. He expects traders to watch this week’s FOMC Minutes for signals on the Fed’s next move. BEL, Sun Pharma and Nykaa remain attractive on dips, with BEL as his top short-term pick.
Amruta Shinde, Technical and Derivative Analyst at Choice Equity Broking, urged caution amid global uncertainty. She advised a selective buy-on-dips approach with tight stop-losses. “Fresh longs should be taken only above 26,100, along with strict trailing stops and partial profit-booking,” she said, adding that global cues will continue to guide sentiment.
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